Multimedia: a new technology for the CPA. (includes related article)

by Miller, Jeffrey R.

Abstract- Multimedia technology is expected to considerably change the day-to-day activities of accountants. An inevitable outcome of the personal computer revolution, multimedia facilitates the intermingling of information stored in text, audio, graphics, animation and video. The advancement of the technology was sped up by the invention of the compact disk-read only memory, a multimedia device that allows for the storage of large quantities of data. Already, multimedia technology is being used in such accounting functions as research, inventories, business presentations and professional training. Owing to its convenience, less travel time required, decreasing application cost and easy administration, the technology is expected to further gain inroads in the world of accountancy.

Multimedia can be used in both marketing and CPE. Here is what it is,
its advantages, and how it can be used--preparing the CPA for its soon-
to-be pervasive use.

During the past decade, the personal computer (PC) has revolutionized
the way accountants carry on their daily activities, from the most
simple to complex tasks they undertake. Multimedia is expected to have a
similar, if not greater, impact during the next decade. This assessment
has been made by computer industry leaders such as John Sculley of Apple
and Bill Gates of Microsoft.

Multimedia was a natural outgrowth of the personal computer revolution
that has had such a profound impact on the accounting profession. Since
its introduction, the PC has provided powerful data-crunching and word-
processing capabilities for businesses and individuals, and
consequently, has dramatically changed the manner information is
processed and the way people work. During the '80s and continuing in the
'90s, numerous companies have installed or are installing networking
systems to facilitate information-sharing. Electronic information is
being transferred from one storage medium to another. However, until
recently, some types of information could not be stored or retrieved
electronically (via computer), such as audio or video images.
Technologies have now been developed to integrate text, audio, graphics,
data-crunching, animation, and video; thus, the PC has become a
multimedia device.

Multimedia Terms and Concepts

Because multimedia technology is still in its infancy, a consensus has
not been reached on a precise definition. Multimedia is the mixing and
mingling of all types of information--numbers, text, graphics, audio,
video, animation, and images.

Reaping the benefits of information technology requires converting
information to and from different media. A multimedia PC requires
special hardware and software to handle data communication between
different devices. For example, a few seconds of high-quality images may
require many megabytes of storage. Consequently, several companies have
been investigating the technology required to make data storage more
efficient. These companies include Apple, Commodore, Fujitsu, IBM,
Intel, Microsoft, NEXT, Philips, and Sony. Intel, for example, has made
great strides in this area working on a technology called Digital Video
Interactive (DVI). DVI attempts to solve the problem of compressing huge
data storage into a form that even ordinary PCs can handle. Compressed
data is stored on hard disks or optical disks. A pair of special Intel
microchips is used to retrieve the data. The main purpose of DVI is to
translate the video data into digital data of a manageable size.

The invention of the compact disk-read-only memory (CD-ROM) has made
many multimedia applications cost effective. CD-ROMs are relatively
inexpensive and have the capacity to store vast amounts of information.
One disk, for example, may hold over 600 megabytes of information, which
offers substantially greater storage capacity than the typical hard disk
found on PCs. A CD-ROM drive may be purchased for as little $300.
Because of its low cost, speed, and capacity to store vast amounts of
information, the CD-ROM is a leading multimedia device.

Besides CD-ROM, videodisc and videotape are used to store information
for multimedia applications. Both multimedia devices utilize full-motion
video. Because videodisc is a random access device, it permits retrieval
of selected information much faster than videotape.

Philips, a laser-disc pioneer, and Sony have been working on a system
called Compact Disc-Interactive (CD-I). Unlike the systems noted above,
CD-I does not need a computer because the CD-I device can be connected
to a television. The CD-I player is an advanced version of the CD player
which revolutionized the music industry. The CDI-910 player developed by
Philips and Sony costs about $600. Philips has also developed a CD
recorder/player which costs around $8,500.

The Cost of Using Multimedia

Getting your computer ready to use a multimedia application can be
relatively inexpensive. The basic requirements are a 386SX computer, 4MB
of RAM, a 80MB hard disk, a color monitor, a sound board, speakers, and
at least one type of multimedia device, such as a CD-ROM drive. Many PCs
used by CPAs already have the hardware noted above, except perhaps a CD-
ROM, sound card, and speakers. To obtain these additional items, the
cost may be well under $1,000, depending upon the quality of the
products and the ease of installation. If other multimedia devices are
required, such as videodisc, then extra costs are involved.

Developing a multimedia software package costs more than getting a
system ready for multimedia applications. The fundamental goal of
multimedia is to allow users to retrieve the information they need in
whatever medium required by the job--audio, text, graphics, video, or
even animation. Consequently, special equipment is needed to produce
these effects. In addition to the basic hardware, the multimedia
developer may need a specialized videocassette recorder and videodisc
player, depending on TABULAR DATA OMITTED the sophistication of the
application.

A course for first-year audit staff is an ideal candidate for
multimedia. For example, the proper methods for taking inventory could
be presented in such a course. A videotape could be made of an actual
inventory count, and the PC could initiate play on the VCR at the proper
time in the course. To incorporate this video in the training course, a
special type of videocassette recorder is necessary. This type of
recorder looks similar to an ordinary VCR, but it is more sophisticated
and rugged. The video can also be stored on disc (e.g., CD-ROM) with the
aid of special software and equipment. Thus, the entire training program
could be stored on CD-ROM. Special programming software needed to
construct a CPE course using all multimedia capabilities can cost up to
$8,000.

Once a training video has been produced, however, it is inexpensive to
duplicate. In many cases, the cost of duplication would be substantially
less than the price of a textbook, and one copy may be used repeatedly.
In addition, if part of the CPE course becomes outdated because of
changes in the tax law or in an accounting pronouncement, the course can
be easily edited and updated.

Manufacturers already produce machines that are equipped to handle
multimedia applications. Table 1 compares five major manufacturers of
such machines.

Current and Potential Multimedia Applications

Multimedia devices are already being used to provide information
accountants need. For example, Commerce Clearing House, Inc. (CCH)
offers its Standard Federal Tax Reporter on two CD-ROM disks. One disk
contains the income tax laws by code section, and the other contains a
history of the IRC and the CCH Citator. A complete Federal tax service
on seven CD-ROM discs coupled with on-line access via modem is also
available. Thus, tax accountants can make effective use of a CD-ROM
drive for traditional tax research, as well as other possible multimedia
applications.

The AICPA currently offers its popular computer database, the National
Automated Accounting Research System (NAARS), on CD-ROM. This database
includes searchable full text of financial statements, related notes,
and auditor's reports of over 4,000 U.S. companies. CD-NAARs is a
subscription service with quarterly updates. Orders can be placed
through the AICPA Order Department (800-862-4272).

American businesses use CD-ROM for purposes other than research. Eastman
Kodak, for example, has found that recording monthly inventory data on
CD-ROMs saves the company over $750,000 annually. Travel agents use CD-
ROMs as a promotional tool. When a customer comes into their office,
they can show them a picture of the hotel, a map of the city, and locate
a restaurant using the CD-ROM.

In the United Kingdom, the government's training agency recognized small
businesses' need for training to improve operating methods. An agency
funded a program to offer 25 multimedia modules covering the key problem
areas that affect small businesses. Each package was priced around $200
and included a videocassette, audio cassette, and a workbook.

Use of Multimedia in Professional Presentations

A CPA is often called upon to give presentations to clients, to civic
and charitable organizations, and to various other groups. Such
presentations are important for they may provide helpful information to
the audience, aid the CPA in personal development, and demonstrate the
skills and talent of the CPA to those that might have a need for his or
her services. Proper use of multimedia may greatly enhance the
effectiveness of such presentations. Many software packages are on the
market today, which give valuable assistance in making convincing
presentations. Such programs help the presenter organize the
presentation, create charts and drawings, and utilize other special
effects. All of these presentation packages, such as Harvard Graphics,
Freelance Graphics, Persuasion, PowerPoint, and Charisma, cost less than
$600.

Multimedia will strengthen presentations by incorporating sound, video,
and animation. All the data to drive the presentation can be stored on a
computer disk. To give a presentation using multimedia, the speaker will
need a computer, an overhead projector, and an ovation (which connects
the computer with the overhead). Laser pointers also may be used to
control the use of multimedia up to 25 feet from the screen. When
certain slides, videos, and animation are to be used during the
presentation, the speaker uses the laser pointer and points and clicks
at an appropriate place on the screen to activate the item at the
desired time. Presentation packages are currently being developed to
take advantage of multimedia capabilities, and they will be on the
market soon. In fact, both Harvard Graphics and PowerPoint presentation
packages already have the ability to use certain multimedia effects
(e.g., sound).

Multimedia and Professional Training

The amount of time many CPA firms devote to the education of their
employees provides a glimpse of the CPE's importance. For example, the
first-year staff of some firms spend up to 80 hours on CPE. Much of this
training for the largest firms takes place at professional education
development centers. To help reduce costs, at least one firm is using
multimedia technology to develop Expert Access System (EAS). EAS uses a
multimedia platform to provide an experience similar to a live-training
session. A central training facility is not needed as employees may stay
in their own offices or even at home and receive the same high-quality
training as if they attended class at the development center, saving
much time and expense.

At Ernst & Young, Robert H. Dean of the Cleveland office helped
develop a multimedia approach called "Desktop Learning" (DTL). He said,
"DTL demonstrates how multimedia enhances the learning process for
certain types of technical subject matter." Steve Davis, director of
technical training in Canada, indicates that for one audit course,
training takes "65% less time, yields a 15% increase in learning as well
as a 25% increase in consistency, which means more of the students are
learning what we want them to learn."

Other companies have also effectively used multimedia training,
resulting in increased learning performance and productivity by their
employees. For example, DuPont used a computer-controlled video system
to train truck drivers. The American Heart Association designed
interactive lessons on how to measure blood cholesterol levels. GTE
North used computers to teach workers how to fix telephone cables and
found audiovisual computer programs can provide a deeper understanding
than lectures or books. Multimedia is expected to have a profound impact
on training and continuing education in many fields of work. Some of the
important educational benefits of using multimedia for CPE are
summarized below.

Focuses on student needs. The instruction is tailor-made to the
student's needs. If the student needs further explanation, the student
may use "hot buttons," to retrieve more information about a term or
concept. In an ideal situation, multimedia will also allow the student
to focus on the method of learning (audio, text, graphics, video, and/or
animation) that is best for him or her.

Improved learning. Studies have indicated that students learn faster,
improve their comprehension, and retain more when multimedia is used.

Expertise. A CPE course may include instruction and comments by the
leaders in the field of study. That is, not only are their words seen,
but their voices will be heard as well (e.g., an audio clip of a speech
or comment).

Actual demonstrations. Not only can the student read what should be
done, but the student can observe the task being performed. By
observing, the information will have a stronger impact on the student
because of its visual impact. The rate of comprehension and ability to
apply the concept will be increased.

Interactive. Multimedia technology provides interaction opportunities in
the educational environment. A multimedia system provides a mix of
words, sounds, images, and student participation to provide a richer
learning environment. The student not only reads or observes what is on
the screen, but sees the task being performed through video, animation,
or still pictures and hears it through dialogue, music, or sound
effects. Not only are more of the student's senses involved in
multimedia training, but the student also becomes an active participant
through interaction with the computer. Among the first applications of
multimedia were video arcade games where words, animation, and sound
effects were used to create entertaining and interactive games by
incorporating colorful graphics, text, and sound. One of the most
important features of video games is that they allow players to interact
with the game. In other words, a player's actions directly affect what
happens on the screen.

Not Just the Big Firms

Multimedia can provide more effective and consistent training even for
firms with more limited resources. Some of the more important cost
benefits of using multimedia for CPE are summarized below.

Convenience. Using multimedia will allow less interruption of the work
schedule. Employees will be able to do the training at more convenient
times, such as before or after normal working hours.

Travel. Less travel time will be involved, since CPE hours may be earned
at the office.

Economies of Scale. Although the initial cost of creating an
instructional program may be expensive, the application may be used over
and over again. Duplication costs are cheap, and updating the program
can easily be done. In addition, the costs of using and producing
multimedia applications are declining.

Administration. CPE courses using multimedia may be given with minimal
interruptions of the normal work schedule, and the programs are
consistent as to the content. Furthermore, a programmed "pop quiz" can
provide instant feedback so that trainees can work through a course
without supervision and the computer will monitor their progress. By the
time the CPE course is completed, each participant should have an
adequate level of expertise.

The AICPA and state societies of CPAs could use the same approach to
develop CPE multimedia programs. The AICPA, in conjunction with
MicroMash and through state societies, currently offers more than 30
computerized CPE courses. These courses offer the same important cost
advantages that multimedia offers. These AICPA courses, however, are not
multimedia applications for they do not integrate sound, video, or
animation and thus lose some of the educational advantages multimedia
offers.

Just the Beginning

As the faster microprocessors needed to present computer-animated images
on the screen become more affordable, the multimedia market is expected
to expand rapidly. Once computers equipped with multimedia facilities
are widely available, experts predict that most training will be
multimedia-based. Leaders in the computer industry, including John
Sculley, predict multimedia will change the world in the 1990s. If these
leaders are even partially correct, CPAs need to understand and be able
to use multimedia to their advantage.

Q/MEDIA FOR WINDOWS: ONE SOURCE FOR MULTIMEDIA

Q/Media for Windows is a multimedia presentation software application
that helps create presentations with video, sound, audio, and animation.
Multimedia presentations are created by simply "dragging and dropping"
sound, video, and animations clips onto the screen.

Q/Media includes everything needed to begin building multimedia
presentations. The package comes with over 10MB of animation, sound, and
video clips. When you install the Windows 3.1 multimedia device, drivers
for animation, video, and sound are automatically installed.

To get the full impact of multimedia, it is recommended that an MPC
compatible machine with a Windows 3.1 compatible audio card be used.
Q/Media also supports a wide variety of full motion video boards
including the Action Media II digital video card from Intel.

Its developers claim Q/Media can be up and running in as little as 15
minutes. Users simply drag and drop elements onto the screen and then
sequence them on a graphical timeline. Q/Media has no scripting
language; transitions, interaction, and synchronization are all
accomplished by simply pointing and clicking.

Q/Media can import slides from many popular Windows presentation and
charting applications including Microsoft PowerPoint 2.0, Lotus
Freelance, and Aldus Persuasion. In fact, any presentation, drawing, or
charting package that can save a file to Windows metafile format can be
used to create backgrounds for a Q/Media presentation.

By combining Q/Media with Microsoft's Video for Windows, you can
incorporate full motion video clips into a presentation without having
to purchase any additional hardware. Q/Media for Windows includes sample
video clips and the Video for Windows drivers for Windows 3.1.

To capture video and incorporate it into your Q/Video presentation you
need a video capture board. Video capture boards are available from a
number of vendors and depending on your requirements range in price form
$500 to $2,000.

In addition to capturing video you can also purchase CD-ROM libraries of
video clips that can be used in presentations. Each Q/Media package
contains a list of vendors that offer stock video, animation and audio
clips with many of them having special pricing for Q/Media users.

L. Murphy Smith, DBA, CPA, is the Price Waterhouse Teaching excellence
Professor at Texas A&M University. He is an editor of The CPA and
the Computer column of The CPA Journal. P. Paul Lin, PhD, and Jeffery R.
Miller, PhD, CPA, are professors at National Cheng Kung University,
Taiwan, and Augusta College, Augusta, GA, respectively.

The
CPA Journal is broadly recognized as an outstanding, technical-refereed
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